Businesses have to put some careful thought into how they insure company vehicles. Comprehensive auto policies are an important part of safeguarding assets and protecting individuals who are driving on the company’s behalf.
Business Coverage and Personal Coverage Compared
In addition, they have to evaluate what type of coverage they will provide for drivers who are using their own vehicles. An individual’s personal policies are likely to exclude claims resulting from the commercial use of a vehicle. Moreover, an employee who is driving in the scope of his or her employment may subject a business to liability if an accident occurs.
Key Policy Considerations
The law of the state in which a business operates will minimum standards for business auto insurance coverage. Commercial vehicles must have coverage that is greater than the minimum standards for personal auto insurance. However, businesses should not automatically default to the minimum thresholds when making policy elections. They must consider their individual risk exposure based on the value of their vehicles, how much time their drivers spend on the road, and any other factors that are unique to their operation.
Businesses should work with an insurance company that is experienced in helping commercial clients obtain auto insurance. They need to be ready to provide detailed information about company vehicles and individual drivers in order to get a customized and competitive quote.